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Beef Exports Deal Expected, CPI Due

JGBS: JGB futures reclaimed 151.00 in the afternoon session, and sit around best
levels heading into the close.
- There was little in the way of news flow apparent, with the long end's modest
outperformance from the morning session extending, allowing the curve to flatten
further in the Tokyo afternoon.
- USD/JPY ran into some resistance ahead of Y113.00, while the Nikkei 225
struggled for traction above 21,500.
- Worth noting that late on Tuesday BBG sources suggested that the Japanese MOF
may reduce 20-Year issuance next FY (similar to earlier RTRS reports), with
super-long end demand exp. from lifers.
- There is a liquidity enhancement auction for off the run 5-15.5 Year JGBs
tomorrow, ahead of the long holiday weekend.
- CPI data is also due tomorrow.
MNI London Bureau | +44 0203-865-3809 |